S&P 500, Nasdaq eke out another day of record highs even as global leaders issue a warning

Benchmark indices on Wall Street eked out yet another day of gains, albeit modest, with two of them continuing to set new record highs in the process.The Dow Jones ended 115 points higher on Thursday, April 16, while the S&P 500 and the Nasdaq ended higher by 0.3% and 0.4% respectively. Both indices set new intraday peaks of 7,051 and 24,156 in the process. For the S&P 500, the index has gained in 11 out of the last 12 trading sessions, while the Nasdaq has ended higher for the 12th day in a row, marking its longest winning run since 2017.

Investors on Wall Street are now suffering from “headline fatigue” as they digested another round of stories emerging with regards to the US-Iran war. As per an AFP report, US President Donald Trump has said that Iran has agreed to handover its enriched Uranium and that the two sides are close to making a deal. Iran has not given an official confirmation to this.
Additionally, Trump on his Truth Social also announced a 10-day ceasefire between Israel and Lebanon, indicating that he would invite both leaders for talks to the White House as early as next week. The ceasefire has taken effect from 5 PM New York Time (2:30 AM IST).

Global Leaders Warn

While markets are making new peaks, global leaders who have gathered at the IMF and World Bank meetings in Washington have a common message: The market is underestimating the economic damage from the war.Qatar’s Finance Minister Ali bin Ahmed Al Kuwari said on Wednesday that what the world is currently witnessing is “just the tip of the iceberg.”

He also warned that a food crisis stemming from a fertilizer crunch would not be far behind.

A Similar warning on Europe’s growth path came from ECB President Christine Lagarde.

IEA’s Fatih Birol said that March was a very difficult month for the world in terms of energy, in terms of the economy, and April may even be worse than March.